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Datadog Extends Slide as Valuation Jitters Persist Despite Bullish Street Calls

A sharp pullback has investors questioning a rich valuation despite solid recent revenue growth.

Overview

  • Shares have fallen about 24% in under a month to roughly $152–153, down from $199.72 on November 10, according to the latest analysis.
  • Analyst sentiment remains broadly positive with a Strong Buy consensus from 42 firms and a $216.62 average target that implies roughly 40% upside.
  • Third‑quarter revenue reached $886 million, up 28% year over year, reflecting continued adoption of the company’s observability and security platform.
  • Selling pressure has tracked macro shifts, including an 8.5% drop on November 20 after stronger jobs data dampened expectations for near‑term rate cuts.
  • Reports highlight elevated valuation, higher operating costs, increasing competition, and a dip below the 50‑day moving average, with some models warning of further downside scenarios.